Swelling and shrinking of polyelectrolyte microcapsules consisting of poly(styrene sulfonate, sodium salt) (PSS) and poly(diallyldimethyl ammonium) chloride (PDADMAC) multilayers have been observed in response to temperature and electrolyte exposure, respectively. Heat-induced capsule swelling and capsule wall volume reduction were observed by confocal laser scanning microscopy (CLSM) and scanning force microscopy (SFM). On the other hand, pronounced shrinking in diameter induced by exposure to an electrolyte was observed in parallel to increases in the thickness of the capsule wall. The estimated wall volume was reduced to two thirds of the control for the salt-exposed capsules and one half for the salt-exposed and simultaneously annealed capsules. This reduction in volume was supposedly mainly caused by the compression of the capsule wall due to the ionic screening from the electrolyte. The highly porous microstructure of the multilayers and loosely bound PSS/PDADMAC complex are thought to be responsible for the structure of the PSS/PDADMAC capsules being easily modulated upon annealing and salt-exposure.